So far, the book has covered how to take a company or organization without a clear WHY and put it on the right track. But what happens when a company has a WHY—but has lost it along the way?
Top executives and business owners have a common problem. When they were asked whether they felt successful, 80 percent of attendees said no. They all felt that as they became successful, they lost the thing that made their business special.
The pattern: although these leaders knew WHAT they did and HOW they did it, they’d become disconnected from their WHY.
The biggest hurdle any company will face is success. That definitely sounds counterintuitive, doesn’t it? After all, isn’t success the goal behind starting with WHY?
The problem is that as a company grows, leadership becomes more removed from the company’s messaging. In terms of the Golden Circle, when your company grows, the rings of the Golden Circle get wider, which moves the leader with the passionate vision further away from making every decision for the company.
When that happens, it’s easy to shift focus from WHY to WHAT—and before you know it, WHY starts coming last. Sink refers to this as “the split,” which he says happens to many successful companies.
That’s why success--or at least, success that makes you lose sight of your WHY--can have negative ramifications on even the most successful company, like:
Think of it this way: the growth of a company is usually measured by your WHAT. As your WHAT increases, your company grows. That makes your “megaphone” louder—but without sticking with your WHY, your message gets muddy.
Eventually, your communication with your customers isn’t inspirational. It’s just noise.
Case Study: The Problem With Walmart
When Sam Walton founded Walmart in 1962, he had one core belief: if he looked after people, then people would look after him and his company. Sam Walton believed in the power of community. That philosophy is what led Walmart from its humble beginnings as a mom-and-pop shop in Arkansas to become the biggest retailer in the world.
As the company grew, Sam Walton stayed committed to his WHY. But when he died, the Walmart became disconnected from its WHY. Instead, executives began to focus on HOW the company did business: selling products at low prices.
But in the process, it sacrificed how it treated people. As a result, Walmart has faced scandal after scandal over treating employees poorly, and it owes hundreds of millions of dollars in settlements.
Competition and changing economy isn’t what’s hurting Walmart: Walmart has become its own worst enemy because it’s success has disconnected it from its WHY.
To counter the problem of losing your WHY, use the School Bus Test is simple: if your CEO was hit by a school bus tomorrow, would the organization continue to thrive?
Strong, inspirational leaders like Steve Jobs, Bill Gates, and Sam Walton do more than just share their company’s values: they embody them and maintain discipline throughout the organization. So when those leaders are gone, the company runs the risk of moving into the split. In other words, a change in leadership is a good time for the company to lose sight of its WHY.
Unfortunately, this is a common issue. Here are three examples of companies that haven’t planned for succession, and as a result, have gone through the split:
Since the WHY usually comes from the company’s founder, it’s important to plan for a smooth succession that keeps your WHY intact when he or she eventually leaves.
In order to make the transition successful**, the original founder needs to make their WHY as clear as possible.** They have to leave a clear cause/belief for their successor to champion. Without that, the next leader is more likely to focus on the company’s WHAT.
Successors to influential leaders need to be picked based on their belief in the company's WHY, not necessarily their skills or current position. If the new leader can’t communicate the company’s vision and values clearly, then the employees in the organization won’t be able to, either.